Saturday, July 18, 2009
10:37:37 PM EDT

Services and Banking

by
James Brown

Why We Like It:
Last week's bounce in stocks is encouraging but it looks like they've come too far too fast. I'm expecting a dip before the rally continues. We want to buy ANW in the $16.60-16.00 zone. We'll start the play with a stop loss at $14.95. More conservative traders might be able to get away with a stop in the 15.50-16.00 region. If triggered at $16.60 our first target to take profits is at $18.25. Our second target is $19.75.

Annotated chart:

Entry on July xx at $xx.xx

J.P.Morgan Chase - JPM - close: 36.89 change: +0.76 stop: 33.90

Why We Like It:
JPM reported earnings last week. Their results were much better than expected and the rally. The stock's performance has helped lead the banking sector higher and last week's breakout could be the beginning of a new leg higher for JPM. Short-term shares look a little overbought. We want to buy a dip at $35.25. Our first target is 38.75.